Notes to Accounts of Black Rose Industries Ltd.

Mar 31, 2015

1 Leases (AS-19)

(a) The company has given part of its lease hold factory building on
operating lease basis for a period of 5 years. The lease agreement is
of non-cancellable in nature and renewable at the end of the expiry
period at the option of both the lessor and the lessee, and there are
no exceptional/restrictive covenants in the lease agreements. There is
no contingent rent.

2 Impairment of Assets (AS-28)

Based on exercise of impairment of assets undertaken by the management
in due cognizance of paragraphs 5 to 13 of AS 28.The Company has
concluded that no impaired loss is required to be booked.

3 Contingent Liabilities

Contingent liabilities not provided for in respect of :- (i) Bank
Guarantee given to Government authorities Rs. 15,000/- (P.Y. Rs. 15,000/-)

(ii) Central Sales Tax liability of Rs. 6,030,980/- (P.Y. Rs. 2,140,665/-)
as per MVAT Audit completed in the current financial year, as the said
liability is on account of non receipt of 'C' forms from various
payable customers and the company is awaiting the receipt of said
forms. The liabilities if any will be accounted in the books of account
in the year in which the final liability is determined.

(iii) Disputed Income Tax demands of Rs. 231,686/- (P.Y. Rs. 231,686/-) for
which company has gone in appeal. The management is of the opinion that
the said demand is likely to be either deleted or substantially reduced
and accordingly no provision has been made.

4 Capitalisation of Expenditure

The company has capitalised the following revenue expenses by debiting
to statement of Profit and loss and transferring the same to capital
work-in-progress (CWIP) account for its project at Jhagadia, Gujarat.
Consequently, expenses disclosed under the respective notes are net of
amounts capitalised by the company.

During the previous year, project at Jhagadia was completed and
consequently all pre-operative expenses lying under capital
work-in-progress were apportioned to the assets created upon completion
of project.

5 The Company has not received any intimation from suppliers regarding
their status under the Micro, Small and Medium Enterprises Development
Act, 2006 and hence disclosures, if any, relating to amounts unpaid as
at the year end together with interest paid/payable as required under
the said Act has not been given.

6 In the Opinion of the Board of Directors, the Current Assets, Loans
and Advances are realisable in the ordinary course of business at
least equal to the amount at which they are stated in the Balance
Sheet. The Provision for all known liabilities is adequate and not in
excess of the amount reasonably necessary.

7 The balances of debtors, creditors and deposits are subject to
confirmation and reconciliation.

8 (i) Figures of the previous year have been re-grouped and
re-classified wherever necessary to correspond with the figures of the
current year.

(ii) Figures have been rounded off to the nearest rupee.

Mar 31, 2014

1 a) Terms/Rights attached to equity shares

The company has only one class of equity share having a par value of
Rs. 1/- per share. Each holder of equity shares is entitled to one vote
per share and dividend per share on pari passu basis. The company
declares and pays dividends in Indian Rupees. The dividend proposed by
the Board of Directors except interim dividend is subject to the
approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March, 2014, the amount of per share
dividend recognised as distributions to equity shareholders was Rs. Nil
(31st March, 2013 Rs. Nil).

In the event of liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company,
after distribution of all preferential amounts. The distribution will
be proportion to the number of equity shares held by the shareholders.

Hypothecation of stocks and book debts of the company, present and
future, and pledge of office premises and corporate guarantee of Black
Rose Trading Pvt. Ltd.

The above charges rank pari passu for all intents and purposes.

Rate of Interest

Effective cost for the above loans are in the range of 12.50% p.a. to
14.00% p.a. (P.Y. 13 % p.a. to 14.25% p.a.)

(b) Provision for leave salary has been made on actuarial valuation as
per the requirement of Revised Accounting Standard 15.

(c) The above actuarial valuation does not include gratuity and leave
salary payable to Executive Director, Mr. Anup Jatia.

3 Notes :

1. The above Related Party relationships are given by the management
and relied upon by the auditor.

2. Figures of previous year are given in brackets.

4 Leases (AS-19)

(a) The company has given part of its lease hold factory building on
operating lease basis for a period of 5 years. The lease agreement is
of non-cancellable in nature and renewable at the end of the expiry
period at the option of both the lessor and the lessee, and there are
no exceptional/ restrictive convenants in the lease agreements. There
is no contingent rent.

(b) Particulars of Asset given on lease

5 Impairment of Assets ( AS-28)

Based on exercise of impairment of assets undertaken by the management
in due cognisance of paragraphs 5 to 13 of AS 28. The Company has
concluded that no impaired loss is required to be booked.

(ii) Central Sales Tax liability of Rs. 936,172/- (P.Y. Rs.
2,677,976/-) as per MVAT Audit completed in the current financial year,
as the said liability is on account of non receipt of ''C'' forms from
various payable customers and the company is awaiting the receipt of
said forms. The liabilities if any will be accounted in the books of
account in the year in which the final liability is determined.

(iii) Disputed Income Tax demands of Rs. 231,686/- (Previous Year Rs.
231,686/-) for which company has gone in appeal. The management is of
the opinion that the said demand is likely to be either deleted or
substantially reduced and accordingly no provision has been made.

7 Capitalisation of Expenditure

The company has capitalised the following revenue expenses by debiting
to statement of profit and loss and transferring the same to capital
work-in-progress (CWIP) account for its project at Jhagadia, Gujarat.
Consequently, expenses disclosed under the respective notes are net of
amounts capitalised by the company.

During the year, project at Jhagadia was completed and consequently all
pre-operative expenses lying under capital work-in-progress were
apportioned to the assets created upon completion of project.

8 The Company has not received any intimation from suppliers regarding
their status under the Micro, Small and Medium Enterprises Development
Act, 2006 and hence disclosures, if any, relating to amounts unpaid as
at the year end together with interest paid/payable as required under
the said Act has not been given.

9 The amount of Deferred Premium/Discount on Foreign Exchange Forward
Contract to be recognised in statement of Profit & Loss in the
subsequent year is Rs. 573,506/- (Previous Year Rs. 549,393/-)

10 In the Opinion of the Board of Directors, the Current Assets, Loans
& Advances are realisable in the ordinary course of business at least
equal to the amount at which they are stated in the Balance Sheet. The
Provision for all known liabilities is adequate and not in excess of
the amount reasonably necessary.

11 The balances of debtors, creditors and deposits are subject to
confirmation and reconcilation.

12 (i) Figures of the previous year have been re-grouped and
re-classified wherever necessary to correspond with the figures of the
current year.

(a) The company has given part of its lease hold factory building on
operating lease basis for a period of 5 years. The lease agreement is
of non-cancellable in nature and renewable at the end of the expiry
period at the option of both the lessor and the lessee, and there are
no exceptional/ restrictive convenants in the lease agreements.There is
no contingent rent.

(b) Particulars of Asset given on lease:

Note : The figures given above are for whole of the asset as per books
of account and not for the part area of the asset given on lease.

(c) The lease rental recognised income in the statement of profit and
loss during the current financial year is Rs. 732,000/-

3. (a) The Provision for current tax of Rs. 12,020,000/- has been made
as per the provisions of Income Tax Act,1961. However, after availing
credit for MAT of Rs. 6,003,235/-already paid, the actual liability
towards tax will be Rs. 6,016,765/-

(b) During the year the company has, in accordance with Accounting
Standard-22 w.r.t Accounting for Credit available in respect of Minimum
Alternate Tax paid under section 115JB of the Income Tax Act,1961, made
provision for Income tax after taking available MAT credit of Rs.
6,003,235/- paid u/s 115JB of the Income tax Act, 1961 in the earlier
years and accordingly the availed amount had been deducted from
openingn MAT Credit Entitlement of Rs. 8,362,380/- appearing as an asset
under the head other long term loans and advances (Note No: 13)

4. Impairment of Assets ( AS-28)

Based on exercise of impairment of assets undertaken by the management
in due cognisance of paragraphs 5 to 13 of AS 28.The Company has
concluded that no impaired loss is required to be booked.

5. Contingent Liabilities

Contingent liabilities not provided for in respect of :-

(i) Custom duty demand of Rs. 1,488,943/- for which the company has
preferred appeal

(iii) Central Sales Tax liability of Rs. 2,677,976/- (P.Y. Rs. 849,750/-)
as per MVAT Audit completed in the current financial year, as the said
liability is on account of non receipt of ''C forms from various payable
customers and the company is awaiting the receipt of said forms. The
liabilities if any will be accounted in the books of account in the
year in which the final liability is determined.

(iv) Disputed Income Tax demands of Rs. 231,686/- (Previous Year Rs. Nil)
for which company has gone in appeal. The management is of the opinion
that the said demand is likely to be either deleted or substantially
reduced and accordingly no provision has been made.

6. Capitalisation of Expenditure

During the year, the company has capitalised the following revenue
expenses by debiting to statement of profit and loss and transferring
the same to capital work-in-progress (CWIP) account for its on going
project at Jhagadia, Gujarat. Consequently, expenses disclosed under
the respective notes are net of amounts capitalised by the company.

7. The Company has not received any intimation from suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclousers, if any, relating to
amounts unpaid as at the year end together with interest paid/payable
as required under the said Act has not been given.

8. The amount of Deferred Premium/Discount on Foreign Exchange
Forward Contract to be recognised in statement of Profit & Loss in the
subsequent year is Rs. 549,393/- (Previous Year Rs. 668,269/-)

9. The balances of debtors, creditors and deposits are subject to
confirmation and reconcilation.

10. (i) Figures of the previous year have been re-grouped and
re-classified wherever necessary to correspond with the figures of the
current year.

(ii) Figures have been rounded off to the nearest rupee.

Mar 31, 2012

A) Terms/Rights attached to equity shares

The company has only one class of equity share having a par value of Rs.
1/- per share. Each holder of equity shares is entitled to one vote per
share and dividend per share on pari passu basis. The company declares
and pays dividends in Indian Rupees. The dividend proposed by the Board
of Directors except interim dividend is subject to the approval of the
shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company,
after distribution of all preferential amounts. The distribution will
be proportion to the number of equity shares held by the shareholders.

a) First & exclusive Charge by way of hypothecation of the Windmills
along with its accessories etc. installed at Tiwri, Location No. 38,
Village - Indroka, Dist- Jodhpur, Rajashthan and Location No. 311,
SamanaSite, Village Paddaval, Taluka - Upleta, Dist - Rajkot, Gujrat-
360 007 by mortgage of the land.

b) First & exclusive charge by way of hypothecation on all trade
receivables.

Hypothecation of stocks and book debts of the company, present and
future, and pledge of office premises and corporate guarantee of Black
Rose Trading Private Limited. The above charges rank pari passu for all
intents and purposes.

Rate of Interest

The rate of interest for above loan is 12.25% to 14.45 % (P. Y. 11 % to
13%)

2 Leases (AS-19)

(a) The company has given part of its lease hold factory building on
operating lease basis for a period of 5 years. The lease agreement is
of non-cancellable in nature and renewable at the end of the expiry
period at the option of both the lessor and the lessee, and there are
no exceptional/restrictive covenants in the lease agreements. There is
no contingent rent.

Note : The figures given above are for whole of the asset as per books
of account and not for the part area of the asset given on lease.

(c) The lease rental recognized income in the statement of profit and
loss during the current financial year is Rs. 732,000/-

Pursuant to the issue of bonus equity shares during the current year,
the earnings per share (EPS) for the previous year has been adjusted as
per para 22 of the Accounting Standard - 20, Earning per Share as
under:

(a) In Numerator the amount is taken as profit for the previous year.

(b) In Denominator the weighted average No. of equity shares
outstanding at the end of the previous year has been adjusted by
increasing the No. of equity shares by the No. of bonus shares issued
as if the event had occurred at the beginning of the earliest period
reported.

4 (a) During the year the company has in accordance with Guidance Note
No. 22 on Accounting for Credit available in respect of Minimum Alternate
Tax paid under section 115JB. The Income of the Income Tax Act, 1961
issued by the Institute of Chartered Accountants of India, has accounted
for MAT Credit Entitlement available in respect of earlier years of Rs. 7,065,91 It- on revision of computation of tax by crediting to the
statement of Profit and Loss and adding to MAT Credit Entitlement
pearing as an asset under the head other long term loans and advances
( Note No. : 13)

(b) During the year the company has in accordance with Guidance Note
No. 22 on Accounting for Credit available in respect of Minimum
Alternate Tax paid under section 115JB of the Income Tax Act,1961
issued by the Institute of Chartered Accountants of India has made
provision for Income- Tax after taking available MAT credit of Rs.
973,223/- paid u/s 115JB of the Income tax Act, 1961 in the earlier
years and accordingly the availed amount had been deducted from
openingn MAT Credit Entitlement of X 8,362,380/- appearing as an asset
under the head other long term loans and advances (Note No. 13)

5 Based on exercise of impairment of assets undertaken by the
management in due cognizance of paragraphs 5 to 13 of AS 28. The
Company has concluded that no impaired loss is required to be booked.

6 Contingent liabilities not provided for in respect of :

(i) Custom duty demand of X 1,488,943/- for which the company has
preferred appeal ( P.Y. Rs. 1,488,943/-)

(ii) Income Tax demand relating to Assessment year 2005-06 for which
the company has preferred appeal with the higher authorities C.Y.
Nil (P.Y. 1308,436/-)

(iv) Central Sales Tax liability of Rs. 849,750/- in respect of financial
year 2010-11 as per MVAT Audit completed in the current financial year,
as the said liability is on account of non receipt of 'C' forms
from various payable customers and the company is awaiting the receipt
of said forms. The liabilities if any will be accounted in the books of
account in the year in which the final liability is determined.

7 The Company has not received any intimation from suppliers regarding
their status under the Micro, Small and Medium Enterprises Development
Act, 2006 and hence disclosures, if any, relating to amounts unpaid as
at the year end together with interest paid/payable as required under
the said Act has not been given.

8 The amount of Deferred Premium/Discount on Foreign Exchange Forward
Contract to be recognized in Statement of Profit & Loss in the
subsequent year is Rs. 668,269/- (Previous Year - Rs. 20,882/-)

9 The balances of debtors, creditors and deposits are subject to
confirmation and reconciliation.

10 Previous year figures

Till the year ended 31st March 2011, the company was using pre-revised
Schedule VI to the Companies Act, 1956, for preparation and
presentation of its financial statements. During the year ended 31st
March, 2012 the revised Schedule VI notified under the Companies Act,
1956, has become applicable to the company. The company has
reclassified previous year figures to conform to this year's
classification. Except accounting for dividend on investments in
subsidiaries, the adoption of revised Schedule VI does not impact
recognition and measurement principles followed for preparation of
financial statements. However, it significantly impacts presentation
and disclosures made in the financial statements, particularly
presentation of balance sheet.

Mar 31, 2011

1. Contingent liabilities not provided for in respect of :-

(a) Custom duty demand of Rs.1,488,943/- for which the company has
preferred appeal (Previous Year Rs. 1,488,943/-)

(b) Income Tax demand of Rs.308,436/- relating to Assessment Year
2005-06 for which the company has preferred appeal with the higher
authorities. (Previous Year Rs.308,436/-)

2. The balances of debtors, creditors and deposits are subject to
confirmation and reconciliation.

3. In the opinion of the Board of Directors, the Current Assets,
Loans and Advances have a value realisation in the ordinary course of
business, at least equal to the amount at which they are stated in the
Balance Sheet and adequate provision for all known liabilities of the
Company has been made.

4. Based on exercise of impairment of assets undertaken by the
management in due cognizance of paragraphs 5 to 13 of AS 28 issued by
the ICAI, the Company has concluded that no impaired loss is required
to be booked.

5. The Company has not received any intimation from suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosures, if any, relating to
amounts unpaid as at the year end together with interest paid / payable
as required under the said Act has not been given.

6. The amount of Deferred Premium/Discount on Foreign Exchange Forward
Contract to be recognized in Profit & Loss Account in the subsequent
year is Rs. 20,882 (Previous Year - Rs.67,368/-)

7. (a) The gratuity charged to the profit and loss account for the
year includes provision as per theactuarial valuation as per the
requirement of Revised Accounting Standard 15 issued by the Institute
of Chartered Accountants of India as well as payment made for the year
towards gratuity. The actuarial valuation is done at the year end using
Projected Cost Unit method and it covers all regular employees.

9. During the year the Company, in accordance with Guidance note No.
22 on Accounting for Credit available in respect of Minimum Alternative
Tax under The Income-Tax Act, 1961 issued by the Institute of Chartered
Accountants Of India, has made provision for Income-tax after taking
available MAT credit of Rs.1,109,314/- paid u/s 115JB of the Income-tax
Act, 1961 in the earlier years and accordingly the availed amount has
been deducted from opening MAT credit entitlement of Rs.3,379,000/-
as an asset under the head Loans & Advances.

10. (i) Figures of the previous year have been re-grouped and
re-classified wherever necessary to correspond with the figures of the
current year.

(ii) Figures have been rounded off to the nearest rupee.

Mar 31, 2010

1. Contingent liabilities not provided for in respect of :-

(a) Custom duty demand of Rs1,488,943/-for which the company has
preferred appeal (Previous Year Rs. 1,488,943/-)

(b) Income Tax demand of Rs 308,436/- relating to Assessment Year
2005-06 for which the company has preferred appeal with the higher
authorities. (Previous Year Rs. 308,436/-)

2. The balances of debtors, creditors end deposits are subject to
confirmation and reconciliation.

3. In the opinion of the Board of Directors, the Current Assets, Loans
and Advances have a value realisation in the ordinary course of
business, at least equal to the amount at which they are stated in the
Balance Sheet and adequate provision for all known liabilities of the
Company has been made.

4. Based en exercise of impairment of assets undertaken by the
management in due cognizance of paragraphs 5 to 13 of AS 28 issued by
the ICAI, the Company has concluded that no impaired loss is required
to be booked.

5. The Company has not received any intimation from suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosures, if any, relating to
amounts unpaid as at the year end together with interest paid / payable
as required under the said Act has not been given.

6. The amount of Deferred Premium on Foreign Exchange Forward Contract
to be recognized in Profit & Loss Account in the subsequent year is Rs.
67,368/- ( Previous Year-Rs 219,925/- )

7. (a) The gratuity charged to the profit and loss account for the
year includes provision as per the actuarial valuation as per the
requirement of Revised Accounting Standard 15 issued by the Institute
of Chartered Accountants of India as well as payment made for the year
towards gratuity. The actuarial valuation is done at the year end using
Projected Cost Unit method and it covers all regular employees.

(b) Provision for leave salary has been made on actuarial valuation as
per the requirement of Revised Accounting Standard 15 issued by the
Institute of Chartered Accountants of India.